So Meta (FB Earnings)
After the close, Meta Platforms (FB) is scheduled to report 1Q22 results (4:05pm) with a conference call set for 5:00 p.m. ET.
For the quarter, EPS and revenue estimates are pegged at $2.51 and $28.2 bln, respectively.
Last quarter, FB issued downside Q1 revenue guidance of $27-$29 bln.
The two main issues:
Rising competition from TikTok
Apple's (AAPL) iOS privacy changes are hurting its advertising business (~97% of total revenue).
Facebook DAUs and MAUs will be closely monitored metrics this quarter. This is because of the intensifying competitive environment. In Q4, Facebook MAUs were essentially flat on a sequential basis, underscoring the competitive threat from TikTok.
A significant portion of the earnings conference call will undoubtedly center on FB's metaverse ambitions and what that will cost the company. This year alone, the company is planning on total capital expenditures of $19-32 bln.
TECHS:
The soft earnings reports from Snap (SNAP) and Google (GOOG) have thrown gasoline on the fire breaking the stock below its post earnings range.
Shares of FB have tanked by nearly 50% this year.
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